‘Patience is wearing thin’ as Wedbush cuts estimates on Rivian

Wedbush reiterated their Outperform rating on Rivian Automotive (NASDAQ:) but cut their 12-month price target on the stock to $25.00 (From $30.00) as the company’s “robust” demand continues to be overshadowed by execution/messaging missteps.

Just this past week, on the heels of a strong 3Q delivery and production report, the electric automaker announced a $1.5 billion convertible debt offering, sending shares plummeting by nearly 16%.

Analysts wrote in a note, “While we maintain our Outperform rating and remain positive on the name, one more big misstep like this convert offering would be the final straw that broke the camel’s back for many bulls including ourselves.”

On a positive note, it seems that Rivian is now headed in the right direction as the company is now focused on increasing production and carefully managing costs.

However, as Rivian heads into its next stage of growth and production expansion, investors continue to watch for strategic/investment surprises, “patience is wearing thin,” said analysts.

In the long-term, Rivian looks to expand both in the U.S. and internationally. The company plans to expand their Illinois factory to meet growing demand over the next decade and increase R1 platform capacity for future variants.

The company is also building a new $5 billion factory in Georgia, their second U.S. plant, with plans to expand production beyond 2024.

Shares of RIVN are down 2.38% in pre-market trading on Monday.